HARRISBURG – An Allegheny County telemarketer, who was previously accused of deceiving consumers in its national magazine and coupon offer, has been found in contempt of a January 2000 settlement agreement.
Attorney General Tom Corbett identified the company as United Publishers’ Service Inc., and its Magazine Solutions, LLC division, both located at 339 Old Haymaker Road, Monroeville.
The original settlement agreement resolved a 1997 federal lawsuit filed by the Attorney General’s Office against the telemarketer alleging violations of Pennsylvania’s Consumer Protection Law, Telemarketer Registration Act and the federal Telemarketing Sales Rule.
According to the 1997 lawsuit, United Publishers’ Service telephoned consumers and informed them that they may have qualified for an $800 grocery coupon check with the purchase of magazines from its “Read-N-Save” offer. Consumers were then told that they were guaranteed to recover the costs of the magazines by redeeming the coupons.
The telemarketer allegedly asked consumers about their finances and interests and led them to believe that they were specially selected to receive the offer. In reality, any consumer who could afford the magazine subscriptions was qualified.
As part of the settlement agreement, United Publishers’ Service was required to cancel consumer contracts, issue refunds and repair negative consumer credit reports.
Corbett said that the Bureau of Consumer Protection received more than 50 complaints indicating that the defendant was operating in violation of the original settlement agreement, as well as state and federal laws relating to telemarketing and debt collection The consumer complaints filed also included the following allegations:
-the defendant failed to honor the consumers’ requests to cancel their enrollment in the magazine program;
-the defendant threatened consumers with lawsuits and wage garnishment in an effort to collect magazine program fees from consumers;
-consumers did not receive the coupons and magazines after enrolling in the program.
“The original agreement with United Publishers’ Services was intended to put a stop to what we believed was a clear attempt to deceive consumers,” Corbett said. “However, the defendant violated that agreement and continued to mislead consumers into signing up for magazine programs. This most recent action looks to permanently put an end to the defendant’s unfair business conduct and coercive debt collection practices.”
Under the terms of the contempt order, United Publishers’ Services, Inc., is enjoined from using its previous telemarketing scripts and mail order agreement, is enjoined from seeking any collection of payment from PA consumers, is required to remove negative information from PA consumers’ credit reports and must pay $10,000 in civil penalties.
Additionally, the defendant must submit a written compliance report to the Commonwealth.
Corbett noted that United Publishers’ Services was previously under investigation by the Federal Trade Commission relating to alleged violations of the Federal Telemarketing Sales Rule. A complaint against the defendants was filed by the FTC and is currently pending before U.S. District Court for the Western District of Pennsylvania.
Consumers who wish to file complaints against United Publishers’ Services or any other consumer complaint can file online or by calling the Attorney General’s Bureau of Consumer Protection at 1-800-441-2555.